In collaboration with Accenture Transitioning Industrial Clusters towards Net Zero: National Policy Enablement for Industrial Decarbonization – Part II WHITE PAPER NOVEMBER 2023 Images: Getty Images Contents Foreword 3 Executive summary 4 The Transitioning Industrial Clusters towards Net Zero initiative 6 1 Americas 7 1.1  Brazil 2 Europe 7 11 2.1  Sweden 11 2.2  Portugal 14 3 Asia and Oceania 16 3.1  Brunei Darussalam 16 3.2  Thailand 19 3.3  Malaysia 22 3.4  India 25 3.5  Japan 28 3.6  United Arab Emirates 31 4 Africa 4.1  South Africa 33 33 Conclusion 37 Contributors 38 Endnotes 39 Disclaimer This document is published by the World Economic Forum as a contribution to a project, insight area or interaction. The findings, interpretations and conclusions expressed herein are a result of a collaborative process facilitated and endorsed by the World Economic Forum but whose results do not necessarily represent the views of the World Economic Forum, nor the entirety of its Members, Partners or other stakeholders. © 2023 World Economic Forum. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, including photocopying and recording, or by any information storage and retrieval system. Transitioning Industrial Clusters towards Net Zero 2 October 2023 Transitioning Industrial Clusters towards Net Zero: National Policy Enablement for Industrial Decarbonization – Part II Foreword Jörgen Sandström Head, Transforming Industrial Ecosystems, World Economic Forum We understand the importance of decarbonization of industrial clusters in achieving net zero and the crucial role that regulators and policy-makers play. Public-private collaboration has reached all-time highs as technology and policy innovation have enabled more robust and accelerated growth in green solutions for industry. As the Transitioning Industrial Clusters towards Net Zero initiative expands into new geographies, we have developed additional comprehensive analyses of the strategies and actions employed by multiple federal governments to propel industrial decarbonization. This analysis complements our first publication, Transitioning Industrial Clusters towards Net Zero: National Policy Enablement for Industrial Decarbonization, by providing a nuanced Miguel G Torreira Managing Director, Global Strategy, Trading, Investments and Optimisation (ATIOS), Accenture and concise overview of an additional 10 countries, including our first countries from the Middle East and Africa. This paper will provide a deep dive into the contextual reasoning behind the industrial cluster approach for decarbonization, which has seen increasing adoption by policy-makers globally. The analysis supports our initiative community of 20 industrial clusters, covering 11 countries across four continents, with a cumulative carbon emissions reduction or abatement potential of 626 million tonnes. Thank you to all of those participating in research and policy analyses for their time and contributions to this paper. Transitioning Industrial Clusters towards Net Zero 3 Executive summary Strong collaboration in partnerships is necessary to navigate the complex themes for industrial clusters decarbonization. Industrial clusters have become a focal point for governments worldwide, leading to a rise in initiatives to tackle industrial carbon emissions. Government commitment and institutional alignment serve as key enablers for accelerating action. It is observed that EU policies, such as the Carbon Border Adjustment Mechanism (CBAM), have a strong influence on industrial decarbonization in other nations including the United Arab Emirates, Brazil and South Africa. Among countries in Asia, Japan and India are leading in terms of policy frameworks for hydrogen. Meanwhile, in emerging economies, policy frameworks for carbon capture, utilization and storage (CCUS) are still in the early stages of development. With the diversity in policy emphasis, it is critical to note the importance of the local context in each country's transition journey and to read this paper with due respect and consideration of this dimension. This paper reviews the legislated policies driving industrial decarbonization in a selection of ten nations across the Americas, Europe, Asia-Pacific, Middle East and Africa, as well as the enabling mechanisms to promote a collaborative, marketoriented i